Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

13. Fair Value Measurements

Items Measured at Fair Value on a Recurring Basis

The following tables set forth by level within the fair value hierarchy the company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of Sep. 30, 2011 and Dec. 31, 2010. As required by accounting standards for fair value measurements, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. For natural gas and diesel fuel swaps, the market approach was used in determining fair value.

Recurring Fair Value Measures

	At fair value as of Sep. 30, 2011
(millions)	Level 1		Level 2		Level 3		Total
Assets
Natural gas swaps	$	0.0	$	0.0	$	0.0	$	0.0
Diesel fuel swaps		0.0		1.5		0.0		1.5
Total	$	0.0	$	1.5	$	0.0	$	1.5
Liabilities
Natural gas swaps	$	0.0	$	34.0	$	0.0	$	34.0
Diesel fuel swaps		0.0		1.5		0.0		1.5
Total	$	0.0	$	35.5	$	0.0	$	35.5
	At fair value as of Dec. 31, 2010
(millions)	Level 1		Level 2		Level 3		Total
Assets
Natural gas swaps	$	0.0	$	1.1	$	0.0	$	1.1
Diesel fuel swaps		0.0		1.8		0.0		1.8
Total	$	0.0	$	2.9	$	0.0	$	2.9
Liabilities
Natural gas swaps	$	0.0	$	29.8	$	0.0	$	29.8
Total	$	0.0	$	29.8	$	0.0	$	29.8

Natural gas and diesel fuel swaps are over-the-counter swap instruments. The primary pricing inputs in determining the fair value of these swaps are the New York Mercantile Exchange (NYMEX) quoted closing prices of exchange-traded instruments. These prices are applied to the notional amounts of active positions to determine the reported fair value.

The company considered the impact of nonperformance risk in determining the fair value of derivatives. The company considered the net position with each counterparty, past performance of both parties and the intent of the parties, indications of credit deterioration, and whether the markets in which we transact have experienced dislocation. At Sep. 30, 2011, the fair value of derivatives was not materially affected by nonperformance risk. The company's net positions with substantially all counterparties were liability positions.

Fair Value of Debt

At Sep. 30, 2011, total long-term debt had a carrying amount of $3,076.1 million and an estimated fair market value of $3,450.7 million. At Dec. 31, 2010, total long-term debt had a carrying amount of $3,226.4 million and an estimated fair market value of $3,449.3 million.

Tampa Electric Co [Member]

Fair Value Measurements

11. Fair Value Measurements

Items Measured at Fair Value on a Recurring Basis

The following tables set forth, by level within the fair value hierarchy, Tampa Electric Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of Sep. 30, 2011 and Dec. 31, 2010. As required by accounting standards for fair value measurements, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Tampa Electric Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. For all assets and liabilities presented below the market approach was used in determining fair value.

Recurring Derivative Fair Value Measures

	At fair value as of Sep. 30, 2011
(millions)	Level 1		Level 2		Level 3		Total
Assets
Natural gas swaps	$	0.0	$	0.0	$	0.0	$	0.0
Total	$	0.0	$	0.0	$	0.0	$	0.0
Liabilities
Natural gas swaps	$	0.0	$	34.0	$	0.0	$	34.0
Total	$	0.0	$	34.0	$	0.0	$	34.0

	At fair value as of Dec. 31, 2010
(millions)	Level 1		Level 2		Level 3		Total
Assets
Natural gas swaps	$	0.0	$	1.1	$	0.0	$	1.1
Total	$	0.0	$	1.1	$	0.0	$	1.1
Liabilities
Natural gas swaps	$	0.0	$	29.8	$	0.0	$	29.8
Total	$	0.0	$	29.8	$	0.0	$	29.8

Natural gas swaps are over-the-counter swap instruments. The primary pricing inputs in determining the fair value of natural gas swaps are the NYMEX quoted closing prices of exchange-traded instruments. These prices are applied to the notional amounts of active positions to determine the reported fair value.

Tampa Electric Company considered the impact of nonperformance risk in determining the fair value of derivatives. Tampa Electric Company considered the net position with each counterparty, past performance of both parties and the intent of the parties, indications of credit deterioration, and whether the markets in which we transact have experienced dislocation. At Sep. 30, 2011, the fair value of derivatives was not materially affected by nonperformance risk. Tampa Electric Company's net positions with substantially all counterparties were liability positions.

Fair Value of Long-Term Debt

At Sep. 30, 2011, Tampa Electric Company's total long-term debt had a carrying amount of $1,991.2 million and an estimated fair market value of $2,291.4 million. At Dec. 31, 2010, total long-term debt had a carrying amount of $2,069.5 million and an estimated fair market value of $2,217.0 million.